If you own a small business, you may be pondering whether you should hire an accountant or not.

As companies strive for growth, one important factor often separates the growing companies from the struggling ones: their financial acumen. And this is exactly where the expertise of seasoned accountants comes into play.

These professionals provide expert guidance, ensure compliance with tax laws, optimize resources, and drive strategic financial planning.

And with the UK’s bustling business scenario, hiring experienced accountants in London can be a game-changer for your business.

In this blog, we will understand the role of accountants in business growth. We will also provide you with some tips on choosing the right accountant.

What is the Role of an Accountant?

Accountants are financial experts who primarily perform the following functions:

  • Maintenance of accurate accounting records
  • Preparation of tax returns
  • Preparing budgets and financial forecasts
  • Performing financial analysis
  • Conducting audits
  • Offering financial advice to businesses on investments, cost reduction, and overall financial strategy

These are just a few of an accountant’s responsibilities, and the right accountants in London can add value to your UK based company in so many other ways.

How Do Accountants Add Value to a Company?

1. Strategic guidance

An accountant's role is not just limited to record keeping. The right small business accountants in London also serve as strategic advisors.

They offer companies crucial insights into their financial situation and also suggest possible growth roadmaps and strategies. A proactive accountant clearly understands the metrics that matter most for your business and will also spot opportunities and identify threats to your business. With that said, a quality account professional can also suggest investments and expansion opportunities that align with your business goals to ensure its growth.

2. Helps save money

If you think that hiring an accountant or accountants in East London will be an extra expense for your business, then think again.

The right accountant pays for their services by saving your business money. For companies of all sizes, minimizing tax burdens is important to ensure sustained growth. Good accountants serve as financial guardians by identifying opportunities for tax savings.

This does not imply they circumvent tax regulations. They ensure that all tax provisions are followed and diligently utilize tax planning strategies.

Moreover, a good accountant will also analyse business expenditures to optimise them. They also keep a keen eye on any relevant opportunities and guide business owners regarding the same.

3. Bookkeeping

Qualified accountants are equipped with the skills to provide crucial bookkeeping services. They maintain detailed financial records for reporting requirements like balance sheets and profit and loss accounts. This ensures that companies have access to financial data whenever needed.

Moreover, such data is also important for planning the growth and expansion of a company. With an up-to-date financial history at their disposal, business owners can make informed decisions and explore new opportunities for the growth of the organisation confidently.

4. Managing cash flow

Cash is the raw fuel for a business, and its improper management can impact a company’s growth to a great extent.

A good accountant will ensure that there are good cash management and credit control policies in place to manage the cash effectively. These policies will ensure that a company has enough cash flow to cover its expenses and liabilities as required and plan for its growth.

In essence, they act as financial architects, constructing a solid foundation upon which the company's growth can be built.

5. Meeting taxation deadlines

Tax rules can be tricky, and they change often. Plus, missing tax deadlines can cost you money in penalties. That's why having an accountant is so helpful. Good accountants stay current on tax laws and deadlines. They make sure your business pays its taxes on time, every time.

Not only that, but accountants can also help you save big bucks. They know about tax breaks and benefits you might not be aware of. With a professional accountant handling the taxes, you can put all your energy into growing your business instead.

6. Financial management

Accountants effectively streamline financial operations by managing payroll, bookkeeping, invoicing, cash flow, etc. This ensures your financial records remain up-to-date and in compliance with regulatory standards.

By entrusting these responsibilities to a skilled accountant, you reduce the risk of oversight, errors, and compliance issues. You also free up your resources for more strategic pursuits.

7. Provide guidance

An accountant isn’t just focused on numbers and their management. They bring their expertise and knowledge to the business too, especially regarding financial matters.

A good accountant can actually be your greatest asset, as they can analyse a company’s previous performance and identify opportunities for improvement and growth. They are also generally aware of what issues companies face during different stages of their growth cycle. Thus, they can help in taking proactive measures to ensure smooth operations and the expansion of the business.

8. Save time

For a business owner, time is money. An accountant takes care of regular record keeping, taxation regulations, payroll management, etc. This ensures the business owner can focus on core business operations and strategic business planning.

This ensures that the business owners can focus on growth opportunities and steer their company towards greater heights while knowing that their financial operations are being expertly managed in the background.

9. Reduce business risk

A well-seasoned accountant also acts as a financial advisor and is no less than a strategic business partner. In certain situations, like dealing with HMRC or negotiating with investors, an accountant can act as a formidable advocate.

Having the right accountant by your side can be a robust defense against uncertainties in businesses, especially in the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) world. With their help, you can navigate any financial complexities with confidence.

10. Technological expertise

In the digitally-driven landscape of today, there are numerous accounting software to help you maintain accounting records easily. However, this can leave a business owner confused as to which software to leverage to get the best results for the company.

Good accountants keep tabs on emerging accounting software. With that said, your accountant can help you select an accounting software that best meets your business’s unique needs. This will ensure that your company remains at the forefront of technological advancements and experiences consistent growth.

Tips to Choose the Right Accountant for Your Company

Choosing the right accountant for your business can be a game-changer for your company. While choosing accountants in London, keep the following points in mind:

  • Assess your business needs and identify specific accounting requirements like bookkeeping, financial reporting, tax compliance, and payroll management for choosing the right accountant.
  • Seek accountants possessing appropriate qualifications and certifications.
  • Consider the accountant's experience and track record, seeking proficiency in your industry and checking references, testimonials, and online reviews.
  • Inquire about the accountant's technology and software proficiency, including knowledge of cloud-based solutions and latest trends.
  • Effective communication and compatibility between accountants and business owners are crucial for seamless business operations. So find accountants who can explain financial concepts clearly and also meet your communication needs.
  • Understand the accountant's fee structure, but also consider the value they provide, rather than solely focusing on the cost.
  • Best accountants in London go the extra mile and provide additional services beyond basic accounting, such as financial planning, business advisory, and specialized tax planning, which can contribute to your business's overall growth and success.

How Unicorn Accountants Can Help?

As you would have understood by now, hiring an accountant is not an expenditure but rather a long-term investment. While we have discussed ten ways in which an accountant can add value to your business, in reality, the advantages would be far greater than these, depending on your business type and your business’ growth stage.

Good accountants are more than employees; they are often more of a strategic partner. They provide valuable guidance regarding strategies and technologies, thereby aiding and facilitating the growth of a business.

The right accountant operates proactively, staying ahead of your needs rather than reactively responding to them.

If you are looking for the right ecommerce accountants in London, do not hesitate to get in touch with us at Unicorn Accountants. With years of experience providing accountancy services to prominent companies in London, we have the expertise to tailor services to your unique business requirements.

As one of the best accountants in central London, our cost-effective services include annual accounts, tax returns, VAT returns, online accounting software, payroll services, tax planning, tax advice, corresponding with HMRC, etc. We also assign a dedicated accountant to each of our customers, ensuring a hassle-free experience and unmatched service for our customers.

Unicorn Accountants is transparent with costs and always delivers beyond customer’s expectations, acting as their personal finance department.

If you are looking for quality small business accountants in London that can add value to your business, look no further than Unicorn Accountants. To speak to our experts, call us at    or leave us an email, and we will get in touch with you at the earliest.